GXO raises 2026 outlook, dismisses Amazon logistics threat

GXO Logistics reported stronger-than-expected first-quarter net Tuesday, driven by maturation successful aerospace, defence and exertion logistics contracts, portion executives pushed backmost against concerns that Amazon’s recently expanded proviso concatenation services could endanger the company’s concern model.

The declaration logistics supplier reported first-quarter gross of $3.3 billion, up 10.8% twelvemonth implicit year, portion adjusted EBITDA accrued 23% to $200 million. Adjusted diluted net per stock roseate 72% to 50 cents.

GXO besides raised its full-year guidance for adjusted EBITDA to a scope of $935 cardinal to $975 cardinal and boosted adjusted diluted EPS guidance to betwixt $2.90 and $3.20.

CEO Patrick Kelleher said GXO’s pipeline reached a grounds $2.7 cardinal during the 4th arsenic the institution expanded deeper into higher-margin verticals specified arsenic aerospace and defense, industrials, beingness sciences and information halfway infrastructure.

“2026 is disconnected to a beardown start,” Kelleher said successful the net telephone connected Wednesday. “In the archetypal quarter, we delivered beardown gross maturation and profitability, underscoring the spot and predictability of our concern model.”

Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is 1 of the largest pure-play declaration logistics providers successful the world. It has much than 970 facilities totaling astir 200 cardinal quadrate feet, with a planetary workforce of much than 130,000 people.

GXO generated $227 cardinal successful caller concern wins during the quarter, with astir 40% tied to strategical maturation sectors including aerospace and defense, technology, concern and beingness sciences.

Executives repeatedly emphasized GXO’s expanding relation successful AI infrastructure and information halfway logistics during the net call.

“In the archetypal quarter, we added $227 cardinal successful caller concern wins crossed cardinal verticals, including notable contracts successful aerospace and defense, respective exertion wins, including further maturation successful AI unreality infrastructure with hyperscalers,” Kelleher said during the call.

Kelleher said the company’s income pipeline is present astatine the highest level successful GXO’s history, with much than $500 cardinal tied to strategical maturation verticals.

“Our full pipeline present stands astatine the highest level successful GXO’s history,” Kelleher said. “And successful the quarter, 40% of wins were successful our strategical maturation verticals, aerospace and defense, industrial, beingness sciences, and technology, peculiarly information centers.”

A large absorption during the net telephone centered connected Amazon’s caller enlargement into broader third-party proviso concatenation and warehousing services, which analysts questioned arsenic a imaginable competitory menace to accepted declaration logistics providers.